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3 Top Undervalued Small Caps In The United Kingdom With Insider Activity

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The United Kingdom's FTSE 100 index recently closed lower, impacted by weak trade data from China, highlighting the interconnectedness of global markets and the vulnerability of UK blue-chip companies to international economic shifts. Despite these broader market challenges, identifying undervalued small-cap stocks with insider activity can offer unique opportunities for investors looking to navigate these turbulent times.

Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom

Name

PE

PS

Discount to Fair Value

Value Rating

Bytes Technology Group

24.5x

5.5x

12.81%

★★★★★☆

Domino's Pizza Group

15.4x

1.8x

30.49%

★★★★★☆

C&C Group

NA

0.4x

47.89%

★★★★★☆

GB Group

NA

3.0x

33.06%

★★★★★☆

Norcros

7.5x

0.5x

2.88%

★★★★☆☆

Harworth Group

13.9x

7.3x

-507.38%

★★★★☆☆

Picton Property Income

NA

7.3x

27.15%

★★★★☆☆

CVS Group

22.1x

1.2x

41.57%

★★★★☆☆

Hochschild Mining

NA

1.6x

43.80%

★★★★☆☆

Foxtons Group

27.8x

1.3x

45.72%

★★★☆☆☆

Click here to see the full list of 23 stocks from our Undervalued UK Small Caps With Insider Buying screener.

Here we highlight a subset of our preferred stocks from the screener.

Domino's Pizza Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Domino's Pizza Group operates a network of franchise and corporate pizza stores, generating income from sales to franchisees, corporate store operations, national advertising and ecommerce, rental income on properties, and various franchise-related fees; it has a market cap of approximately £1.50 billion.

Operations: The company's revenue is primarily derived from sales to franchisees (£461 million), corporate stores income (£42.9 million), national advertising and e-commerce income (£85.5 million), rental income on leasehold and freehold property (£1.9 million), and royalties, franchise fees, and change of hands fees (£82.4 million). Gross profit margin has shown an upward trend, reaching 47.48% in the latest period ending June 30, 2024.

PE: 15.4x

Domino's Pizza Group, a small cap in the UK, has recently announced share repurchases starting August 6, 2024. The company plans to buy back up to 39.5 million shares by August 1, 2025. Despite facing a dip in H1 sales (£326.8 million) and net income (£42.3 million), insider confidence remains high with significant share purchases earlier this year for £90.1 million. Domino's expects trading momentum and growth in orders for the rest of fiscal year 2024.

LSE:DOM Share price vs Value as at Aug 2024
LSE:DOM Share price vs Value as at Aug 2024

Hammerson

Simply Wall St Value Rating: ★★★☆☆☆